More Corporate Stuff
Posted by Sarah Loats
NCUA released a summaryof the PIMCO analysis with its Weekly Corporate Credit Union Update on Friday. Of note the summary states:
"In its assessment of possible courses of action, PIMCO views were that the most attractive option, in the intermediate term, is for NCUA to continue to hold the portfolio. The greatest risk will be aggressive servicer modification of loan terms and/or principal forgiveness. They were also of the view that NCUA should monitor the options of whether or not to buy loss protection and to possibly repackage some of the senior RMBS securities to enhance portfolio liquidity. These strategies are influenced by capital reserve and accounting treatments."
The update indicates that Clayton Fixed Income Services, Inc. is conducting a review of the private label mortgage backed securities of US Central and WesCorp. The purpose of the review is to determine the level of OTTI charges the two corporates will record, and to finalize the outstanding CPA audits.
In additiona, NCUA notes that it will provide guidance on "any extinguishment of paid-in-capital and membership capital accounts at corporate credit unions when the March 31, 2009, financial statements for WesCorp and U.S. Central are released."